In 2024, China seeks to imitate GDP by 5% but defense grows by 7.2%

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In his first speech before the plenary session of Parliament Li Qiang The work reads a 2024 GDP growth target of around 5%, practically identical to the previous year's target, which runs counter to increasingly critical indicators in recent months for Beijing's economy. The military budget will grow by 7.2% in 2024, at the same level as last year at 1,665 billion yuan (about $232 billion). Taiwan in the crosshairs After independents won elections for a third time, Beijing is increasing its focus on reunification goals.

Inflation target

China is struggling with deflation, so targets include 3% inflation, 12 million new jobs in urban areas, and an unemployment rate of “about 5.5%” (but youth unemployment, which is the hardest in the government’s plans, is not mentioned).

The deficit is expected to reach 3%, compared to 3.8% in 2023, after issuing new government bonds to support the economy. Private debt securities worth 1,000 billion yuan (about $140 billion) are scheduled to be issued in the coming months, which will likely be recorded off-balance sheet.

In 2023, the budget was estimated at +7.2% compared to +7.1% in 2022, equivalent to 1,560 billion and 1,450 billion yuan, respectively. The two figures have been largely stable if expressed in dollars, around $230 billion, due to the exchange rate effect, while continuing to follow the growth trend.

Taiwan worker

China expresses its full determination to thwart Taiwan independence and all related obstructions. This, as expected, is the most awaited element of foreign policy. This is now being repeated in recent labor reports but has become even more urgent following the pro-independence Democratic Progressive Party's victory in January, its third in a row.